In response to a written question, the Government has confirmed that it intends to publish draft legislation this Summer to require companies to report annually on the pay ratio between their CEO and the average worker.

The legislation will follow the Government’s consultation on corporate governance reforms, published in November 2016, and its response statement in August 2017. In that response, the Government said it intended to introduce “a pay ratio reporting requirement for quoted companies comparing the pay of the chief executive officer with that of pay in the wider UK workforce”.

The response by Andrew Griffiths MP states that the detail of the pay ratio-reporting proposals has been developed since then through two phases of informal consultation with a balanced range of stakeholders.